In the long run, imports are paid for by
A) investment.
B) exports.
C) dollars.
D) gold or other universally accepted monies.

Question

Quizplus · Accepted Answer

In the long run, the payments for imports are made by exports. When a country imports more than it exports, it creates a trade deficit, which means it owes other countries money. This deficit can only be paid by exporting more goods and services in the future to earn foreign currency. Therefore, exports are the best option for paying for imports in the long run.

In the Long Run, Imports Are Paid for by